37234 Federal Register / Vol. 63, No. 131 /Thursday, July 9, 1998 /Rules and Regulations

1 16 CFR 432.1(a).

2 Id.

3 62 FR 16500.

4The appropriateness of the standard test

procedures for self-powered speakers is addressed

as part of the ANPR appearing elsewhere in this

Federal Register.

5The commenters were: Phillips Sound Labs

[Phillips](1); Fultron Car Audio [Fultron](2);

Klipsch Audio and Home Theater Products

[Klipsch](3); Miller & Kreisel Sound Corporation

[MK](4); Consumer Electronics Manufacturers

Association [CEMA](5); and Labtec Multimedia

Speakers [Labtec](6). The comments are cited as

‘‘[name of commenter], Comment (designated

number), p. l.’’ All Rule review comments are on

the public record and are available for public

inspection in the Public Reference Room, Room

130, Federal Trade Commission, 6th and

Pennsylvania Ave., NW, Washington, DC, from 8:30

a.m. to 5:00 p.m., Monday through Friday, except

federal holidays.

6See MK, (4), P. 1; Klipsch, (3), p. 1.

7Labtec, (6), p.4. The commenter proposed that

the Commission amend the Rule to specify a

separate testing protocol and disclosure format for

three-piece multimedia speaker systems comprised

of a subwoofer and two or more satellite speakers

that are powered by separate amplifiers that share

a common power supply. This issue is addressed

in the ANPR appearing elsewhere in this Federal

Register.

8CEMA, (5), pp. 2, 7. This comment also

recommended that the Rule be amended at a future

date to incorporate a standard for measuring the

volume of sound that a powered speaker can deliver

into the listening environment, rather than the

power that the amplifier can deliver to the speaker.

This commenter stated that a voluntary industry

standard for measuring the loudness of powered

speakers was currently under development and

could be incorporated into the Rule.

The Commission has concluded that Rule

coverage of such self-powered speaker equipment

should not be delayed until an industry standard

is developed for measuring and disclosing the

sound output of such speaker systems. The

Commission lacks a sufficient basis to conclude that

the as-yet unspecified testing and disclosure format

would provide more useful information to

consumers than would the Rule’s power rating

protocol. In addition, even if the industry should

develop a loudness standard, some manufacturers

may continue to provide power output

specifications that would be covered by the current

Rule. The Commission believes that the Rule’s

continuous power output protocol and a future

industry loudness protocol could coexist in a

complementary fashion should such a standard be

developed.

FEDERAL TRADE COMMISSION

16 CFR Part 432

Trade Regulation Rule Relating to

Power Output Claims for Amplifiers

Utilized in Home Entertainment

Products

AGENCY: Federal Trade Commission.

ACTION: Final rule.

SUMMARY: The Federal Trade

Commission (‘‘Commission’’ or ‘‘FTC’’),

has completed its regulatory review of

the Rule relating to Power Output

Claims for Amplifiers Utilized in Home

Entertainment Products (the ‘‘Amplifier

Rule’’ or the ‘‘Rule’’). Pursuant to that

review, the Commission concludes that

the Amplifier Rule continues to be

valuable both to consumers and firms

and that certain substantive

amendments to the Rule may be

appropriate. The Commission publishes

the results of the regulatory review and

an Advance Notice of Proposed

Rulemaking (‘‘ANPR’’) in a separate

document elsewhere in this Federal

Register. The regulatory review record

suggests that a non-substantive

technical amendment be made to the

Rule to clarify the Rule’s applicability to

self-powered loudspeakers for use in the

home. This document sets forth that

amendment.

DATES: The effective date of this

amendment is July 9, 1998.

FOR FURTHER INFORMATION CONTACT:

Dennis Murphy, Economist, Division of

Consumer Protection, Bureau of

Economics, (202) 326–3524 or Robert E.

Easton, Esq., Special Assistant, Division

of Enforcement, Bureau of Consumer

Protection, (202) 326–3029, Federal

Trade Commission, Washington, D.C.

20580.

SUPPLEMENTARY INFORMATION: The

Commission is publishing this

document pursuant to Section 18 of the

FTC Act, 15 U.S.C. 57a et seq., the

provisions of Part 1, Subpart B of the

Commission’s Rules of Practice, 16 CFR

1.7 et seq., and 5 U.S.C. 551 et seq. This

authority permits the Commission to

make a non-substantive amendment to a

rule by seeking comment and

announcing the amendment in the

Federal Register.

The Amplifier Rule was promulgated

on May 3, 1974 (39 FR 15387), to assist

consumers in purchasing ‘‘sound power

amplification equipment manufactured

or sold for home entertainment

purposes’’ by standardizing the

measurement and disclosure of various

performance characteristics of the

equipment.1 As examples of covered

equipment, the Rule lists radios, record

and tape players, radio-phonograph

and/or tape combinations, component

audio amplifiers ‘‘and the like.’’ 2

On April 7, 1997, the Commission

published a Federal Register Notice

(‘‘FRN’’) seeking comment on the Rule

as part of a continuing review of its

trade regulation rules to determine their

current effectiveness and impact (62 FR

16500). This FRN sought comment on

issues relating to the costs and benefits

of the Rule, what changes in the Rule

would increase its benefits to

purchasers and how those changes

would affect compliance costs, and

whether technological or marketplace

changes have affected the Rule. The

FRN also sought comment on the Rule’s

coverage of self-powered speakers for

home use. Specifically, the Commission

announced its tentative conclusion that

the Rule covers self-powered speakers

for use with home computers, home

sound systems, home multimedia

systems and other sound power

amplification equipment for home

computers.3 The FRN noted that,

although there were few self-amplified

home entertainment speakers when the

Rule was promulgated in 1974, selfpowered speakers fit within the Rule’s

definition of covered products and are

very similar to the examples given in

the Rule. The Commission also solicited

comment on additional issues related to

coverage of self-powered speakers under

the Rule, including whether the

standard test conditions set out in the

Rule are appropriate for such

equipment.4

The FRN elicited six written

comments,5 four of which addressed the

issue of the rule’s coverage of selfpowered speakers. Two manufacturers

of self-powered loudspeakers for use

with home sound systems expressed

unqualified support for including such

equipment within the Rule’s coverage.

One of these commenters stated that

there is a great deal of consumer

confusion regarding amplifier

performance in self-powered speakers

and that manufacturers ‘‘are now

engaging in the same type of misleading

practices that led to the creation of the

Amplifier Rule in 1974.’’ 6 One

additional commenter appeared to

support including such equipment

under the Rule, but expressed concern

that the Rule’s current testing format

and disclosures are not compatible with

combination speaker systems consisting

of two or more amplifiers.7 The

principal trade association of the U.S.

consumer electronics industry

supported applying the Rule to selfpowered speakers and including such

products in the scope of the Rule.8

On the basis of the plain language and

intent of the Rule, as supplemented by

record comments, the Commission has

concluded that self-powered speaker

systems for use with home computers,

home multimedia systems, and home

sound systems are within the coverage

of the Rule. Self-powered speakers are

‘‘sound power amplification

equipment’’ which can be ‘‘manufacture

or sold for home entertainment

purposes.’’ These speakers perform the

same functions as the other

amplification equipment listed in the

examples cited in the Rule.

Consequently, the Commission has

determined to adopt a clarifying non-
Federal Register / Vol. 63, No. 131 /Thursday, July 9, 1998 /Rules and Regulations 37235

substantive amendment to the Rule that

adds self-powered speakers for use in

home computer and sound systems to

the list of examples of covered sound

power amplification equipment

provided in § 432.1(a) of the Rule.

This non-substantive amendment to

the Rule does not raise any issues under

the Regulatory Flexibility Act (‘‘RFA’’),

5 U.S.C. 601 et seq. The amendment

does not change the requirements of the

Rule in any manner. It simply clarifies

the scope of the Rule by naming as

examples certain products that already

are covered. The Commission, therefore,

certifies, pursuant to section 605 of the

RFA, 5 U.S.C. 605, that the amendment

will not have a significant impact on a

substantial number of small entities.

Similarly, the amendment does not raise

any issues under the Paperwork

Reduction Act (‘‘PRA’’), 44 U.S.C. 3501

et seq. The PRA requires government

agencies, before promulgating rules or

other regulations that require

‘‘collections of information’’ (i.e., record

keeping, reporting, or third-party

disclosure requirements), to obtain

approval from the Office of Management

and Budget (‘‘OMB’’), 44 U.S.C. 3502.

Because the amendment does not

impose any collection of information

requirements, OMB approval is

unnecessary.

List of Subjects in 16 CFR Part 432

Amplifiers, Electronic products,

Home entertainment products, Trade

practices.

For the reasons set forth in the

preamble, 16 CFR Part 432 is amended

as follows:

PART 432—POWER OUTPUT CLAIMS

FOR AMPLIFIERS UTILIZED IN HOME

ENTERTAINMENT PRODUCTS

1. The authority citation for part 432

continues to read as follows:

Authority: 38 Stat. 717, as amended; (15

U.S.C. 41–58).

2. Section 432.1(a) is revised to read

as follows:

§ 432.1 Scope.

(a) Except as provided in paragraph

(b) of this section, this part shall apply

whenever any power output (in watts or

otherwise), power band or power

frequency response, or distortion

capability or characteristic is

represented, either expressly or by

implication, in connection with the

advertising, sale, or offering for sale, in

commerce as ‘‘commerce’’ is defined in

the Federal Trade Commission Act, of

sound power amplification equipment

manufactured or sold for home

entertainment purposes, such as for

example, radios, record and tape

players, radio-phonograph and/or tape

combinations, component audio

amplifiers, self-powered speakers for

computers, multimedia systems and

sound systems, and the like.

* * * * *

Benjamin I. Berman,

Acting Secretary.

[FR Doc. 98–18203 Filed 7–8–98; 8:45 am]

BILLING CODE 6750–01–M